Metal recycler
Sims Metal Management
has posted an underlying net profit of $68.8 million, well below consensus expectations of a $87 million result.

Underlying net profit was up sharply on last year’s result of $15.9 million, but market conditions continue to challenge the group; revenue fell 0.9 per cent to $7.1 billion.

The world’s biggest listed scrap metal merchant is battling intense competition and overcapacity in its core North America market.

Tough winter weather conditions in the United States during the year weighed on sales volumes, which fell 7.6 per cent to 11.8 million tonnes.

Source: Sims Metal Management
AFR

“The result is a positive improvement over last year in the face of still challenging market conditions. While I am encouraged by the progress we’ve made, much work still needs to be done," Sims chief executive Galdino Claro said in a statement.

Mr Claro has embarked on a major turnaround plan for Sims that targets an additional $300 million in earnings before interest and tax over years.

The earnings uplift is to come from internal improvements rather than any change in business conditions.